Obstacles In Formulating KRAs & KPIs For The Firm- Plz Suggest Me.

Hi Swati,
Find here something that helps you.
Regards

hi swati,
i tried to develop one excel as a example. pls check the attachment. its example of a HR executive hadnling recruitment and other stuffs.
total should not exceed 100%. Idea is that first divide the objective in major business results like in HR its Recruitment, Organisation structure, Attrition, Retention, Analysis etc, then divide these in sub objectives then put the measure of performance ie how we will measure, and then give the weightage.
This has to b done at the begining of appraisal cycle. While review (during performance review) rating has to be given. THose things are not there in this attachment.
its only KRA related.
Others please add on ur views and attch if there are other good methods, obviously there are various methods to do this.
Regards,

Dear Swati,
KRA AND KPA

Key Result Areas

“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA. KRAs are also known as key work outputs (KWOs).

Value

Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions

Description

Key result areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).

EXAMPLE
SALES [ KRAs]
-customer sales revenue
-customer servicing level
-merchandising
-accounts relationship
-key accounts / major accounts service
=======================================
KEY PERFORMANCE AREAS

These are the areas within the business unit, where an
individual or group, is logically responsible / accountable
for the results.

To manage each KRA, a set of KPI are set .

KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.

EXAMPLE
SALES
-sales target [ 15%] growth

CUSTOMER SERVICE
-raise service index by 6%

WAREHOUSING
-improve picking/ packing rate by 7%

You can have many KRAs/KPIs but 3/5 is workable
at best.

HOPE THIS IS USEFUL TO YOU.

Hi Folks,
I have been reading everybody's suggestions, comments from quite long time. But unfortunately im not able to post threads as im not a part of this group. So, if someone can please send me an invite, So that i can be a part of that group.
Regards
Chitraa:icon1:

???? I guess u already posted some info below.
I dont think there is a seperate invitation for joining the group.

Dear Swati,
I have been following the post you mailed. I guess u must have recd more or less all info reg the same.
I am attaching The KRA sheet we used for our PMS system. This will give you insight on KRA , KPI, target for each KRA and way to measure each KRA.KPA and KPI are more or less mean same.
Once you decide KRA of the dept only then u will be able to break the same at individual level.
And don't get disheartened. I took 3 mths only to derive KRA for a group of 40 people. It said that people will first oppose you,then they will fight with you,then they laugh at you and then you win.
All the best.

KPI is the unit of measurement given to KRA'S, you can also say weightage given to KRA'S.that is the only difference.

Dear Swathi,
I'm also on the way to prepare a comprehensive Smart Goals for my Employer. Some days back I posted Smart Goals for HR Department for review of seniors on CiteHR. The same is attached for your info and review.
Please note that I've almost completed my work and within some days I'll upload the Smart Goals for a Group of Companies containing 8 SBUs and 80+ Job Categories with Objectives, Vision & Mission Statements and SBU Organization Chart.
Looking foward to recieve your comments to improve my efficiency.
Thanks & Best Regards,
Syed Muhammad Alam
Oman

Dear Ms.Swati Saxena,

Following is the earlier post on above topic by MR. Leo...
I felt it will help you... Have a nice time..
Thanks Mr. Leo.
Regards,
Vijay.

Key Result Areas

“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.

Value of KRAs.

Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions

Description of KRAs

Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
================================================== ================

CORE KRAs of HR DEPARTMENT

-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/
-DIVERSITY MANAGEMENT
-PERFORMANCE MANAGEMENT

-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT
-INDUSTRIAL RELATIONS
-SAFETY AND HEALTH WORKPLACE

-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
============================================-=======
KRAs [ KEY RESULT AREAS are managed by
-KPAs [ KEY PERFORMANCE AREAS]
-KPIs [KEY PERFORMANCE INDICATORS]
===================================

KEY PERFORMANCE AREAS

These are the areas within the HR DEPARTMENT, where an
individual or group, is logically responsible / accountable
for the results.

To manage each KRA/ KPAs, a set of KPI are set .

KRA and hence KPI is attributed to the department which
can have effect on the business results and is
self measured where applicable.

THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS
KRAs/KPAs/ KPIs ARE GUIDED BY THE

*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.

================================================== ======
HERE IS AN EXAMPLE, WHICH YOU CAN USE TO DEVELOP
OTHERS FOR YOUR ORGANIZATION.

CORPORATE OBJECTIVE / STRATEGY
-improve the company competitive positioning and productivity
by 10%.

HR DEPARTMENT'S OBJECTIVE
-Achieve high productivity level in all activities [ say by 10%]
-------------------------------------------------------
KRA 1
-RECRUITMENT/ SELECTION

KPA --RECRUITMENT

KPI ----reduce average time taken to fill vacancies by 15%
KPI ----reduce average cost per recruit by 10%
-------------------------------------------

KRA 2
-WORKPLACE MANAGEMENT

KPA -labour turnover

KPI ---reduce the labor turnover by 20%
KPI ----benchmark total HR COSTS externally.
------------------------------------------------

KRA 3
-SAFETY AND HEALTH WORKPLACE

KPA ---workplace accidents

KPI ----reduce workplace accidents by 10%
---------------------------------------------

KRA 4
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING

KPA ----TRAINING

KPI --- ALL WORKFORCE below middle management should
receive a minimum of 4 days of training.

=========================================
THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED.

THIS CAN BE APPLIED TO ALL OTHER FUNCTIONAL
DEPARTMENTS LIKE MARKETING / SALES / PRODUCTION ETC.

Key process indicators or Key process areas represent the route or the process adopted to achieve the respective Key Result Area & is eqully important as achieving the KRAs. One has to win a prize only after following the specified ethical/ legal route or procedure.
Anand